Latin Resources Ltd (ASX:LRS) is teaming up with envirotech organisation CRC CARE to research and develop emission reduction technologies using halloysite mineral from the Cloud Nine deposit in WA.
The three-year, $3.2 million project, led by CRC’s Professor Ravi Naidu and funded by Latin, will kick off in January 2022.
This project will focus on modifying Latin Resources’ halloysite/kaolinite minerals to develop material-based emission reduction technologies, including feed supplements for cattle, spreadable material and halloysite shale for inhibiting and adsorbing methane.
Ultimately, the deal reinforces Latin’s commitment to its environmental, social and governance (ESG) credentials.
Bringing Australian technology to global stage
Speaking to the initiative, Latin Resources managing director Chris Gale said: “The capture and utilisation of greenhouse gases, including methane and carbon dioxide, is an increasingly important issue for governments and communities globally in terms of mitigating the impacts of climate change.
“The decision announced by Ursula von der Leyen at the COP 26 climate summit in Glasgow confirming over 100 countries will participate in the methane reduction program, displays the potential reach with the environmental products, if the research and development (R&D) project proves to be successful.
“The potential for our Cloud Nine halloysite to be part of the suite of global solutions is significant. We are exceptionally excited by the commercial potential of the CRC R&D opportunity.
“While the CRC CARE research project will investigate a range of potential uses, the reduction in methane emissions from cattle stands out as one where Australian commodities and technology advances could have a global impact.”
The fine print
CRC CARE is an independent organisation that works with end-users to perform research, develop technologies and provide policy guidance for assessing, cleaning up and preventing contamination of soil, water and air.
Previous collaborators include BHP PLC, Rio Tinto and the Australian Department of Defence.
CRC CARE scientists also have extensive experience in clay research, leading to environmental products with commercial applications.
As part of its deal with CRC, Latin has agreed to fund two key research projects in a three-year period.
The first will investigate halloysite feed supplements for the cattle industry in a bid to reduce methane emissions.
First, the cows eat their regular feed, enhanced with an Australian halloysite solution.
As the food works its way through the digestive system, the solution reduces the end methane output without compromising the animal’s health.
Latin and CRC’s second project considers how methane emissions can be curbed in cattle feed facilities.
The initiative will employ halloysite nanotubes in portable material sacks on the barn ceilings, where they can capture methane and other greenhouse gasses throughout the feeding and farming processes.
Crucially, Latin will wholly own the research results and intellectual property rights tied to the R&D project.
Further, any product developed as a result of this work has the potential to be commercialised by the ASX-lister.
With $3.2 million to expend, Latin has budgeted the following stipends for the envirotech initiative:
Latin intends to back CRC CARE’s research and development with existing cash and investments, government R&D technology funding and by exercising LRSOC options, which expire in December 2022 and will net Latin over $4,000,000 in cash in the event they are all exercised.
Halloysite project has “enormous potential”
Commenting on the program, CRC CARE CEO and managing director Professor Ravi Naidu said: “CRC CARE has a proud history of developing environmentally protective technologies that have been adopted by industry and government.
“We were the first organisation more than 15 years ago to modify natural clay to clean up PFAS contamination and have since built world-leading expertise in the use of modified clay for environmental applications.
As a forward-thinking, scientifically-driven company focused on the circular economy, Latin Resources is a perfect industry partner for CRC CARE’s unique collaborative R&D model, which has a proven track record of improved environmental and economic outcomes.
“With efforts to reduce greenhouse gas emissions becoming increasingly urgent, this halloysite project has enormous potential nationally and globally.”